AUD/USD rejected near 0.6050, erases gains

AUD/USD is now trading largely unchanged on the day around 0.6020, having bounced up from 0.5990 to 0.6049 an hour ago, possibly tracking the signs of risk reset in the equity markets. 

The S&P 500 futures are currently reporting a 2.6% gain, and major Asian indices like Japan'sNikkei, South Korea's Kospi and stocks in Australia are flashing green. Copper, one of Australia's top exports, too, is up 1% as of writing. The Aussie dollar typically responds positively to an uptick in equities and industrial commodities. That positive correlation seems to be playing out in Monday'sAsian session.

The buoyant risk-on sentiment is seemingly being fostered by reports of a slowdown in the number of coronavirus cases in some of the worst-hit countries like the US, Italy, and Spain. 

However, the slowdown could be a blip, as noted by New York's Mayor and that maybe capping gains in the Aussie dollar. Also, recession fears have been bolstered by Friday's jobs data, which showed the American economy lost 701,000 in March, ending 113 straight months of job growth.

The Australian currency could end up falling back to session lows, if the stocks surrender gains, tracking the decline in the oil benchmarks. At press time, both brent oil and the West Texas Intermediate (WTI) crude are reporting at least 6% losses. The black gold has come under pressure on a decision by Russia and Saudi Arabia to push out their meeting to Thursday from Monday. 

Technical levels